The Federal Reserve Board's recent decision to avoid further increases in the prime interest rate for the remainder of the year is good news. In addition to being an advantage for homebuyers in general, it can also benefit those who already have a home mortgage loan that they want or need to refinance.
For some homeowners, opting to refinance can allow them to pull equity from their home that can be used for other large financial needs, such as college tuition for the kids or a costly home renovation or repair. Those who currently have a high-interest rate or an adjustable mortgage can also benefit from refinancing to lock in a lower rate or get the advantages of a fixed-rate loan. If you are in the market to refinance your home, the United States Department of Agriculture (USDA) Streamline Assist Refinance Loan may be worth considering.
Who can qualify to use it?
USDA Streamline Assist refinancing is currently available to homeowners who originally used the USDA home loan program to purchase their home. Originally a pilot program that was only available on a limited scale, this refinance program has been proven to be successful and is now available on a national scale.
Why should it be considered?
Among the key advantages of this USDA mortgage refinancing option over other types is the fact that homeowners with negative equity in their homes may still benefit from it. In addition, it does not require homeowners to get or pay for an appraisal or provide financial information. Instead, applicants are only required to prove that they have made at least one year of timely mortgage payments.
What else should an applicant know?
When applying for the USDA Streamline Assist refi option, applicant's may or may not be subject to a credit check. While the loan does not actually require the lender to pull the applicant's credit report or officially require verification of a minimum credit score, some lenders do choose to obtain the credit report in order to verify mortgage payment history.
What costs are involved in using this loan?
Refinancing with the USDA Streamline Assist program will include payment of closing costs and like other USDA loans, it is subject to additional fees. In most cases, borrowers can choose to roll their closing costs into the new home loan amount, making it possible to close without any cash out of pocket.
To learn more about the USDA Streamline Assist refinance loan, or make an application for one, contact an approved lender or mortgage broker in your area.
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